Telangana Leads India in Data Centre Policy Attractiveness: S&P Global

**New Delhi:** Telangana has emerged as the most attractive Indian state for data centre policy, supported by strong electricity and regulatory incentives, according to an S&P Global Energy analysis. The assessment is part of S&P Global's **India Forward: Reimagining Growth** report, which examined state-level policies aimed at attracting data centres and related digital infrastructure. The analysis found that Telangana, Maharashtra, Uttar Pradesh and Gujarat had Data Center Policy Attractiveness India (DCPAI) scores of around 50 out of 100, placing them in the leading cluster. S&P Global Energy evaluated 19 policies covering information technology, IT-enabled services, data centres and Global Capability Centres across 11 states. The policies were assessed across four broad categories: electricity; land and capital; operational and technical support; and regulatory and Ease of Doing Business measures. Telangana's policy framework was identified as the most attractive overall, particularly because of its electricity and regulatory incentives. Maharashtra and Uttar Pradesh were noted for more balanced packages spanning power, infrastructure, capital and regulatory support, while Gujarat stood out for electricity and Ease of Doing Business measures aimed at attracting hyperscalers. ### Other states in the assessment Odisha, Haryana, Andhra Pradesh and Karnataka formed the second cluster, with DCPAI scores ranging from 42 to 45. S&P Global said Andhra Pradesh led this group in land and capital support, while Karnataka had notable Ease of Doing Business measures, including an Essential Services Maintenance Act provision. Odisha and Haryana were noted for incentives covering multiple stages of the project life cycle. Rajasthan, Tamil Nadu and West Bengal formed a third cluster, scoring between 30 and 40. Tamil Nadu performed strongly on capital expenditure support, including incentives linked to captive renewable energy infrastructure, while electricity-related incentives were comparatively weaker in Tamil Nadu and West Bengal. ### Data centre capacity expected to expand S&P Global Energy estimates that India's existing data centre capacity stands at around 1.5 GW. Around 5 GW of additional capacity has already been committed, while another 6-7 GW has been announced or is in the early planning stages. India's data centre capacity is projected to reach 26.3 GW by the 2031-32 fiscal year, according to projections cited in the report. S&P Global Energy also estimates that electricity demand from data centres, including cooling and operational loads, will grow at an annual compound rate of about 18 per cent between 2025 and 2035. The report describes competition among states to attract data centre investment as an example of “competitive federalism”, with governments using fiscal incentives, streamlined approvals, infrastructure support and access to reliable power to attract digital infrastructure projects. S&P Global said the expansion of data centres is becoming increasingly important to India's digital infrastructure as demand for computing capacity grows, particularly in areas linked to artificial intelligence.